Reference no: EM132680744

1. A $10 million par value bond was sold at 101. The premium is transferred to the debt service fund. Create the journal entries for both funds.CPF:
DSF:

2. The city signs several construction-related contracts for goods and services to cost $15 million.

3. The city receives contractor invoices for $15.1 million for construction and related services from a project. The invoices include a $300,000 additional over-time charge not included in the original contract but approved by the city controller. The city pays the invoices with 10% retention.

4. A capital projects fund records a liability for $50,000 a reimbursement due to the general fund for city engineering costs and project management overhead. Create journal entries for the capital projects fund and the general fund.

5. A capital projects fund pays costs of $15,000 related to fixing contractor errors and applies the amount to the retention account.

6. A capital projects fund creates a budget for a $25 million project that is being funded $15 million from a grant, $6 million from the sale of bonds, and $4 million from transfers from the general fund.

7. A city's capital projects fund engages in a lease for three police cars from a local car dealership. Payments are $40,000 per year for 5 years. The implicit rate of interest is 10% and a $5,000 down payment is made. The present value of the lease is $150,000. At the end of the lease, ownership transfers to the city.

Problem 1: Prepare the journal entries at the inception of the lease and for the first year's payment. Funding is provided by GF transfers to a DSF. Payments are made by the DSF. Identify in which fund(s) your JE's are recorded. Entries for the GF transfers are not required.